Hello traders,
Here is my daily analysis for Bitcoin. As you can see on the daily chart, we have a very bearish scenario.
We have broken the support line that was holding us since July 2021.
We have retested the line and failed to break above it with a red candle.
We have also broken the 200-day moving average, which is a sign of a long term downtrend.
We are now below the $30,000 level, which was a psychological barrier for many investors.
What does this mean?
It means that we are in a new bear market for Bitcoin, and we can expect lower prices in the future.
It means that we should look for selling opportunities on every bounce, and use a trailing stop loss to protect our profits.
It means that we should be careful of short term rallies or volatility, as they are traps and fakeouts in a bear market.
What are the targets?
The first target is the previous low at $18,000, which is a very realistic and achievable goal.
The second target is the 1.618 Fibonacci extension at $12,000, which is based on the length of the previous bear market from 2017 to 2019.
The third target is the 2.618 Fibonacci extension at $6,000, which is a more pessimistic and extreme goal, but not impossible.
How to trade?
The best way to trade this scenario is to sell Bitcoin on every bounce, and use a trailing stop loss to protect your profits.
You can also use leverage to increase your returns, but be careful and manage your risk properly.
You can also diversify your portfolio by investing in other cryptocurrencies that follow Bitcoin’s trend, such as Ethereum, Litecoin, Ripple, etc.
Happy trading! 😊
Here is my daily analysis for Bitcoin. As you can see on the daily chart, we have a very bearish scenario.
We have broken the support line that was holding us since July 2021.
We have retested the line and failed to break above it with a red candle.
We have also broken the 200-day moving average, which is a sign of a long term downtrend.
We are now below the $30,000 level, which was a psychological barrier for many investors.
What does this mean?
It means that we are in a new bear market for Bitcoin, and we can expect lower prices in the future.
It means that we should look for selling opportunities on every bounce, and use a trailing stop loss to protect our profits.
It means that we should be careful of short term rallies or volatility, as they are traps and fakeouts in a bear market.
What are the targets?
The first target is the previous low at $18,000, which is a very realistic and achievable goal.
The second target is the 1.618 Fibonacci extension at $12,000, which is based on the length of the previous bear market from 2017 to 2019.
The third target is the 2.618 Fibonacci extension at $6,000, which is a more pessimistic and extreme goal, but not impossible.
How to trade?
The best way to trade this scenario is to sell Bitcoin on every bounce, and use a trailing stop loss to protect your profits.
You can also use leverage to increase your returns, but be careful and manage your risk properly.
You can also diversify your portfolio by investing in other cryptocurrencies that follow Bitcoin’s trend, such as Ethereum, Litecoin, Ripple, etc.
Happy trading! 😊